Closer scrutiny of Charities is being proposed in a discussion paper released by Commerce Minister Craig Foss.
“We don’t want a few organisations damaging the reputation of all New Zealand charities,” says Foss. “Charities make a valuable contribution to society and it’s important to get the balance right. They must be transparent and accountable but not subject to too much interference.
“The changes under consideration will only affect the largest 20 per cent of charities in New Zealand and leave smaller charities unaffected,” says Mr Foss.
A higher level of transparency and accountability is being called for.
Registered charities are currently required to include financial statements in their annual return when it is lodged with the Charities Commission, but there is no requirement for the financial statements to be independently audited or reviewed.
Charities that spend more than $300,000 a year would have their financial statements audited, and charities spending between $200,000 and $300,000 would be required to complete an audit or assurance engagement.
Interested parties have until 20 July 2012 to make submissions.
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